First Home Buyers
Buying your first home is exciting and normally will represent one of the biggest financial investments you will make in your life. In today's market there are many different lenders, all with different types of home loan products and borrowing criteria. In this regard choosing the right lender and home loan product to reflect your specific circumstances can sometimes be a daunting task. There are many questions that you may need to consider as part of arranging finance to purchase your first home which include the following;
How much can I borrow?
Different lending institutions all have different borrowing criteria however generally the amount you can borrow will depend on a number of variables which include the following:
- What income you earn.
- The amount of your deposit.
- Your current ongoing financial commitments.
- Allowing for adequate living commitments.
- Understanding your future intentions.
Our loan calculator can assist provide you with an indication of how much you maybe able to borrow.
How much deposit is required?
The amount of deposit required can vary between lenders however the more deposit you have available the less you will need to borrow. Normally most lenders require a minimum 5% of the property purchase price to be provided as a deposit plus ensuring you have sufficient additional funds to meet all associated purchase costs eg Stamp Duty, Legal Costs. If you have less than 20% deposit most lenders will require the loan to be underwritten with Lenders Mortgage Insurance which requires a one off insurance premium to be paid by the borrower to protect the lender from any potential losses they may incur. To avoid having to pay Lenders Mortgage Insurance, borrowers usually need to have deposit of 20% plus sufficient funds to meet associated costs.
What are the additional costs?
The costs associated with purchasing a property vary between state to state however would normally include the following;
- Stamp Duty on Transfer
- Registration of Transfer
- Registration of Mortgage
- Bank Establishment fees
- Lenders Mortgage Insurance
- Search costs
- Legal costs
- Building inspection reports
- Home Insurances
- Relocation expenses
Our associated costs calculator can assist provide you with an estimate of your costs.
First Home Buyers Grant?
You may be eligible to qualify for a First Home Owner Grant from your state government. This grant varies between states and further information can be found from the following sites;
- New South Wales: NSW Office of State Revenue
- South Australia: RevenueSA
- Queensland: Office of State Revenue
- Queensland: Office of State Revenue - Regional First Home Owner Grant (RFHOG)